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Many small business owners have never heard this term but they should know what it is! Fractional means partial or part-time (in this case). CFO stands for Chief Financial Officer which I will break down further because I love defining words to get entrepreneurs to really understand what we are talking about!
Chief:
a person holding a position of high responsibility and authority
Financial:
relating to money
Officer:
an executive position which is responsible for overseeing and making decisions about a particular area—in this case, financial matters.
Fractional CFO:
An experienced financial executive who works on a part-time basis for a company or in our case, an experience financial consultant who works with the owner in the executive division of their business focused on the bigger financial picture because the owner doesn't have time and isn't an expert in this area. Typically small to mid-sized businesses would have a part-time Fractional CFO or hire us for those services because they aren't a large corporation which requires a full-time CFO. The benefit is high-level financial expertise without the cost of hiring a full-time employee. The other benefit is the synergy created by having another executive level person to accomplish more in your business than you would by yourself.
A Fractional CFO essentially can help the business save money and make money.
Fractional CFO Services:
Financial strategy and planning
Cash flow management
Budgeting and forecasting
Financial reporting and analysis
Risk management and compliance
Create or implement internal financial systems
Fundraising and investor relations (we do not offer this)
These services are intended to help the business grow, streamline operations, and simplify complex financial situations. Although we offer this service as either an add-on to our Bookkeeping services or by itself, we can also combine it with our Efficiency Consulting as a one-time project to ensure the business is set up correctly to eliminate wasteful expenses and actions.
These services are intended to help the business grow, streamline operations, and simplify complex financial situations.
The service basically pays for itself because we are continually detecting wasted funds, unnecessary actions and ways that income can be increased or collected in a more timely manner.
Bookkeeping vs Fractional CFO Services:
Bookkeeping:
Focuses on the day-to-day financial transactions and record-keeping. All financial data is recorded, such as tracking expenses, invoicing, payroll, managing accounts payable and receivable, reconciling bank statements, and preparing financial reports.
Fractional CFO:
Handles higher-level strategic financial oversight. While they may review or oversee bookkeeping functions, their role is more focused on financial strategy, forecasting, budgeting, analyzing financial performance, and guiding the business on long-term financial goals and growth
Most small business owners are still working in the production division of their business, not to mention the sales division and other areas. It pays to have an expert monitoring your financial scene to help you identify red flags and come up with solutions to grow your business, make more money and save money.
Let us know if this blog helped. If you would like a Free Consult, CONTACT US!
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